Market Outlook – 29 March 2017

Five Days Of Narrow Ranges Inside A Trading Range Suggests Big Move Ahead; Nifty, Nifty Bank At The Verge Of A Breakout; Contraction In Market For Past Few Days Is Likely To End Soon; Financial Stocks Likely To Outperform.

Daily market research analysis

NIFTY

Narrow range movements continue in the Nifty. Within this narrow range, the markets are crafting a bullish bias. But, the elephant in the room is the very narrow range movement in the Nifty.

This narrowing of the range represents contraction. On the daily charts, index is trading within the range of just 120 points. Such narrow ranges cannot last therefore; we can expect a fairly large move in the Index which would be expansion.

When markets are in contraction, there is always a possibility that the expansion can be on any of the two sides – up or down. However, for the fact that prices started the session with a gap up and closed it on a day’s high, index may favors the expansion on upside.

Financial stocks continue to outperform with Bank Nifty is also at the verge of a breakout from a narrow trading range. Traders can look for a buying opportunity in Banking and Financial stocks only on dips and consolidation breakouts.

 

BANK NIFTY:

Bank Nifty had a narrow range day in the markets; index opened with a gap up and traded choppy throughout the day. Index made a high just above 21250 and at the end of the day, prices closed near the highs at 21230.10 with a gain of nearly 200 points. However, index managed to sustain the gap up which may lead to an up move in Bank Nifty.

On the daily charts, the index is trading inside a range 20450 – 21300 from last month but now at the verge of a breakout. We are giving a long trade in the anticipation of a breakout in the Bank Nifty.

Trade in BANK NIFTY: Look for a buying opportunity above 21350.

Or, if opens above 21350 then apply 15 min rule.

The idea is to wait for first 15 min to be over. Your entry point will be the high made between 09:15 to 09:30 AM. If prices cross 15-min high, then take a long trade.

If that trade executes, place your stop below 21100 in either of above two cases.

TECHNICAL PICKS

COMPANY NAME CMP B/S RATIONALE
SBIN 282 BUY Intermediate and short term trend is up in SBI. The stock has seen an upside rally and then started a process of consolidation. Prices have seen a breakout and closed higher. Buy this stock above 283. If this trade executes then place your stop just below 280 and a target near 290.
IBULHSGFIN 964 BUY Intermediate and short term trend is up in IBULHSGFIN. The stock has seen an upside rally and then started trading narrow. Prices are now at the verge of breakout from its resistance. Buy this stock above 965. If this trade executes then place your stop just below 950 and a target near 995.

DERIVATIVE PICKS

Stock Name Strike Price Buy/Sell CMP Initiation Stop Loss Target Remarks
SUNTV MAR FUT BUY 784.5 CMP 770 795-800 OI Increase

 

Long Buildup Short Buildup
Stocks Price Price% OI % OI Stocks Price Price% OI % OI
EICHERMOT.17.03 Mar 25073 3.37 4.08 187950 PETRONET.17.03 Mar 393.2 -3.33 13.79 5011500
AXISBANK.17.03 Mar 504.5 3.24 0.07 27693600 TECHM.17.03 Mar 458 -2.51 10.03 10391700
SUNTV.17.03 Mar 784.5 3.05 1.03 5478000 KOTAKBANK.17.03 Mar 861.35 -1.18 11.44 9265600
ZEEL.17.03 Mar 530.7 2.57 4.7 8390200 ONGC.17.03 Mar 187.3 -1.11 1.81 37121250
TATAMTRDVR.17.03 Mar 286.6 2.52 6.39 15395100 DISHTV.17.03 Mar 109.05 -0.91 0.27 20804000
                                                                           Short covering                                                                               Long Unwinding
SRTRANSFIN.17.03 Mar 5.26 -1.26 2301600 1076 BHARATFIN.17.03 Mar 828 -3.58 -1.13 14720000
INDIACEM.17.03 Mar 2.86 -2.66 19617500 158.35 CEATLTD.17.03 Mar 1289.9 -3.28 -11.54 1803200
TORNTPHARM.17.03 Mar 2.83 -2.95 184400 1447.85 APOLLOTYRE.17.03 Mar 204.8 -2.78 -10.89 9576000
BHARATFORG.17.03 Mar 2.78 -5.52 3207000 1050.15 MRF.17.03 Mar 58615 -2.15 -4.01 40230
JINDALSTEL.17.03 Mar 2.74 -10.88 29034000 119.9 IBREALEST.17.03 Mar 80.9 -1.34 -9.94 23380000

TOP DELIVERY PERCENTAGE

Stocks Price %Chg Vol Delivery Del % % Change
Sectors Price Change % Quantity
Hero MotoCorp Limited 3326.9 -0.49 338652 9071572 98.87 Nifty 50 9100.8 0.61 79509
Tata Motors DVR  A  Ord 285.65 2.48 2464330 7013593 89.65 Nifty Bank 21225.4 0.8 79509
Kotak Mahindra Bank Limi 859.45 -1.34 3049130 3673713 84.94 Nifty IT 10681.05 0.31 79509
HDFC Ltd. 1504.1 1.99 2272786 2018971 83.47 INDIA VIX 12.12 -2.59 79509
Infosys Limited 1035.15 0.61 2398398 2995550 77.96 Nifty Energy 11298.2 -0.09 79509
ITC Ltd. 280.5 -0.39 6289874 9351305 76.93 Nifty FMCG 23467.7 0.1 79509
Hindustan Unilever Ltd 903.1 0.48 565803 2156284 76.17 Nifty Pharma 10497.7 0.53 79509
Cipla Ltd 594.15 0.35 772698 787520 75.84 Nifty Realty 212.15 -0.42 79509
Hindustan Zinc Ltd 326 0.65 6512418 4691817 74.53 Nifty Infrastructure 3049.7 0.58 79509
Wipro Ltd 507.55 0.7 623110 730485 74.45 Nifty Auto 9887.8 0.81 79509

UPCOMING ECONOMIC DATA

                                      Domestic
•Nikkei Manufacturing PMI on 03rd April , 2017.

•IIP Data on  12th April , 2017. (Tentative)

CORPORATE NEWS

•Ashok Leyland will invest Rs 400 crore to develop new light commercial vehicles (LCVs) within the next two years and plans to triple its sales in the segment by 2019-20.

•Suven Life Sciences has received one product patent from New Zealand for its molecule to be used in the treatment of neuro-degenerative diseases.

•Cairn India and Vedanta have received all the required approvals for their merger, except the Reserve Bank of India’s nod for issue of preference shares, accelerating the process of combining the two companies.

•V-Guard Industries has received in-principle approval from its board to acquire a majority stake in Guts Electromech Ltd.

Source: Economic Times, Business Standard                             .

BOARD MEETINGS

Company Name Purpose Meeting Date Company Name Purpose Meeting Date
NBCC Dividend 29-Mar-17 KOTAKBANK Raising of Funds 30-Mar-17
SUBROS Issue of Securities 29-Mar-17 MONNETISPA Appointment 30-Mar-17
OFSS Dividend 29-Mar-17 INDNIPPON Dividend 30-Mar-17
NBCC Dividend 29-Mar-17 APCOTEXIND Meeting Updates 31-Mar-17
COFFEEDAY Issue of Securities 30-Mar-17 SUMEETINDS Rights Issue 31-Mar-17
VEDL Dividend 30-Mar-17 MOLDTKPAC Dividend 31-Mar-17
S&SPOWER Others 30-Mar-17 LAKPRE Results 31-Mar-17
JINDALSTEL Raising of Funds 30-Mar-17 GUFICBIO Meeting Updates 3-Apr-17

CORPORATE ACTION

Company Name Purpose Ex-Date Company Name Purpose Ex-Date
BEL Interim Dividend – Rs. – 0.9000 29-Mar-17 SHARDACROP Interim Dividend – Rs. – 2.0000 30-Mar-17
HINDZINC Special Dividend – Rs. – 27.5000 29-Mar-17 ASHARI Bonus issue 4:1 31-Mar-17
NBCC Interim Dividend – Rs. – 0.5300 29-Mar-17 INFRATEL Interim Dividend – Rs. – 12.0000 31-Mar-17
MAHLIFE Right Issue of Equity Shares 30-Mar-17 SFCL Amalgamation 31-Mar-17
MPHASIS Buy Back of Shares 30-Mar-17 OIL Buy Back of Shares 3-Apr-17
MUTHOOTFIN Interim Dividend – Rs. – 6.0000 30-Mar-17 CONCOR Bonus issue 1:4 5-Apr-17
PFC Interim Dividend – Rs. – 5.0000 30-Mar-17 COLPAL Interim Dividend – Rs. – 3.0000 6-Apr-17

 


DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


For Daily Share Market Updates, Market Research Analysis reports, Weekly Techno-Funda Report, Fundamental Analysis Report, Monthly Recommended stock Picks, Equity Trading Tips, Upcoming IPO/NFO/Bonds/Ncd’s  updates & other related information Subscribe our blog http://research.elitewealth.in

or Call us on: 011-42445800/9650901058